Receiving Dividends

[dotsman]

Newbie Investor question:

OK, made my first share purchase this week (1200 BT Shares via Internaxx). Anyway, was just wondering what to expect with regards to dividends.

According to BT, they will be paying their Final dividend on September 17th and the Ex-dividend/Record date is August 22nd. Does this mean I am entitled to the dividend payout (assuming I hold onto my shares until September 17th)?

I can't find out much on the Internaxx website other than "All dividends will be credited to your Internaxx account." in the FAQ.

So, given all this, am I right to assume that I will receive dividends from BT and that they are just payed into my internaxx account? (This is what I have always assumed, but now that I have taken the plunge, am a little nervous because it is not spelled out for me!)

Thanks in advance for your reponses!

 

[Brendan Burgess]

If you hold the shares until 22 August, you will get the dividend. If you sell the shares after that, they will sold "ex-dividend" which means that the buyer is not entitled to the dividend.

Brendan

 

[JR Rizzo]

If you hold the shares until 22 August, you will get the dividend. If you sell the shares after that, they will sold "ex-dividend" which means that the buyer is not entitled to the dividend.

Brendan

dotsman,
please also note that when stock goes ex-dividend,
its price usually drops by this dividend amount.

JR.